Profit warnings by UK-listed firms have risen to their highest summer level in six years, according to a new report. The report, by the consultancy firm EY (Ernst & Young), advised that quoted firms issued 69 profit warnings in the third quarter of 2014, up from 56 in the same period in 2013. It is the highest level for the three-month period to 30 September since 2008.
Supermarket giant Tesco and retailer Next were among the companies to issue profit warnings during the period. Profit warnings are issued by companies quoted on a Stock Market to alert investors that profits will be lower than in the previous year.
The survey said that despite a rise in economic output, firms were facing crowded and competitive markets. It also said bargain-hunting customers, rapid structural change and, until recently, a strong Pound (£) had hampered progress. The construction materials industry also issued a high number of warnings because older contracts have come under intense margin pressure due to rising costs.
Caroline Williams, CEO of Norfolk Chamber of Commerce said: The most recent British Chambers of Commerce Quarterly Economic Survey (released 9 October 2014), which includes Norfolk Chamber members, did show a dip in confidence, but overall the Norfolk economy remains strong.
Norfolk businesses are quietly confident and the Chamber continues to see real growth in export documentation numbers, as well as more businesses attending our networking events, both of which are signs of businesses looking for new opportunities to grow.”
